U.S. Markets closed

Top Analyst Reports for Comcast, Deere & Exelon

Mark Vickery
Top Analyst Reports for Comcast, Deere & Exelon

Thursday, February 28, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Deere (DE) and Exelon (EXC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Comcast’s shares have outperformed the S&P 500 in the past year, gaining +6.4% vs. +2.9%. The Zacks analyst thinks Comcast is benefiting from solid growth in residential high-speed Internet customers. Expanding Wi-Fi coverage along with innovative xFi control features is improving customer experience. The company’s Xfinity Mobile is now used by more than one million customers.

Additionally, Green Book’s Best Picture Oscar win bodes well for Comcast division Universal Pictures. Further, the Sky acquisition expands Comcast’s international reach. Notably, the company will enter the streaming market through NBCUniversal’s upcoming service.

However, the streaming market is highly competitive and significant investment is needed to gain footprint. Hence, incremental spending on content can hurt Comcast’s margin expansion. Moreover, the company continues to lose voice and video subscribers due to cord-cutting. Additionally, high debt level is a headwind.

(You can read the full research report on Comcast here >>>).

Shares of Deere have increased +11.7% over the past six months, outperforming the S&P 500, which has declined -3.6% over the same period. Deere’s first-quarter fiscal 2019 adjusted earnings and revenues rose on a year-over-year basis aided by demand growth in key markets. Earnings missed expectations while revenues beat the same.

For fiscal 2019, Deere projects net sales growth of 7% year over year and net income of $3.6 billion. The Zacks analyst thinks the company will benefit from improving construction markets and growing replacement demand for agricultural equipment. The acquisition of Wirtgen, which enhances Deere's exposure to global transportation infrastructure, will be a catalyst. Introduction of advanced technologies in its products will fuel growth.

Raw material cost inflation, elevated expenses and unfavorable foreign currency impact will hurt margins in the near term. Nevertheless, Deere remains well poised for long-term growth backed by population and urbanization growth.

(You can read the full research report on Deere here >>>).

Exelon’s shares have gained +30.4% in the past year, outperforming the S&P 500 which has gained +2.9% over the same period. Although Exelon’s earnings per share during the fourth quarter were in line with estimates, the bottom line improved from the year-ago level. The improvement was due to new rates at PHI and higher energy efficiency earnings at ComEd.

The Zacks analyst thinks Exelon is likely to benefit from its $23-billion planned capital investment, focus on zero-emission electricity generation and cost savings. The company continues with its hedging program to manage market risks and protect the value of its generation. Strong cash flow generation capacity will help it lower debt levels and increase value of its shareholders.

However, Exelon is subject to the impact of commodity price volatility and price fluctuation in the wholesale markets. Stringent government regulation is also a cause of concern.

(You can read the full research report on Exelon here >>>).

Other noteworthy reports we are featuring today include Monster Beverage (MNST), Hormel Foods (HRL) and Newmont (NEM).

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

High Speed Internet Subscriber Gains Benefit Comcast (CMCSA)

Favorable Demand, Acquisitions Drive Deere (DE), Costs Ail

Regulated Investments, Cost Management Aid Exelon (EXC)

Featured Reports

Monster (MNST) Poised to Gain From Strong Energy Drinks Unit

Per the Zacks analyst, Monster Beverage sports strength at its energy drinks category, mainly driven by Monster Energy brand.

Debt Cuts, Investment in Growth Projects Aid Newmont (NEM)

The Zacks analyst is impressed with Newmont's efforts to reduce debt and improve efficiency.

BioMarin (BMRN) Focuses on Palynziq Launch & Gene Therapy

The U.S. launch of BioMarin's newest rare disease drug Palynziq's is progressing well. Its growing pipeline focus towards gene therapy agents encourages the Zacks analyst.

Project Investments Aid Entergy (ETR), Operational Risks Hurt

Per the Zacks analyst, Entergy's disciplined investments in growth projects bolsters growth prospects.

Twilio (TWLO) Rides on Product Strength, Expanding Clientele

Per the Zacks analyst, Twilio's firm focus on introducing products is leading to a robust expansion of its existing clientele and first-time deals with the new ones, thereby aiding its topline.

Customer Additions and Investment Aid Atmos Energy (ATO)

Per Zacks analyst Atmos Energy's planned $9-$10B investment in next five years, along with expansion in customer volumes and new rates will drive performance of the company.

Avis Budget (CAR) Benefits from Partnerships, Fleet Growth

The Zacks analyst believes that expansion of connected cars fleet has helped Avis Budget streamline operations and reduce costs.

New Upgrades

Chemed (CHE) Gains Ground on Strong Roto-Rooter Business

The Zacks analyst is bullish about Chemed's Roto-Rooter arm seeing consistent growth on strength in the core plumbing and drain cleaning service segments as well as solid water restoration business.

Strength in Service & Custodial Units Aid HealthEquity (HQY)

Strong growth in Service and Custodial segments boost HealthEquity. The Zacks analyst is also optimistic about solid growth in HSA (Health Savings Account) members.

Acquisitions Likely to Keep Driving Hormel Foods (HRL) Units

Per the Zacks analyst, Hormel Foods' refrigerated foods and international units are gaining from buyouts. Notably, the buyouts of Columbus and Fontanini are expected to continue fueling performance.

New Downgrades

Sluggish New Vehicle Retail Sales Weigh on AutoNation (AN)

Per the Zacks analyst, weakness in few major markets and huge availability of off-lease used vehicles lowered sales generated by AutoNation's new vehicle retail unit.

Weakness in China, Rise in Costs Hurt A. O. Smith (AOS)

Per the Zacks analyst, A. O. Smith is struggling with low sales of electric water heaters & air purifiers with high selling, general & administrative costs in China. Rise in steel prices is a concern.

Mounting Costs and Risky Loans Hurt KeyCorp (KEY) Profits

Per the Zacks analyst, increasing costs mainly due to rise in personal expenses are likely to hurt KeyCorp's bottom-line growth. Moreover, substantial exposure to real estate loans remains a concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Newmont Mining Corporation (NEM) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
Hormel Foods Corporation (HRL) : Free Stock Analysis Report
Exelon Corporation (EXC) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research